Today I am opening my 11th trade of the year in what has so far been a good year. As is always the case, you can see past 2016 (and previous years) trades here:
http://www.intelligentspeculator.net/livetrades
Let’s start off by looking at the numbers:
| Ticker | Name | Price | PE Ratio | PE Next Year | Return YTD | Sales Growth | Analyst rating | Book Value | Beta | Earnings | Revenue/Share | Sales 5Y Avg Growth | EPS 5Y Avg Growth |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MTCH | Match Group Inc | 16.33 | 26.73 | 15.35 | -3.8 | 19.8 | 4.11 | 1.94 | N/A | 5/2/2017 | 4.86 | N/A | N/A |
| FB | Facebook Inc | 142.05 | 43.68 | 21.1 | 23.78 | 54.16 | 4.71 | 20.47 | 1.06 | 4/26/2017 | 9.65 | 50.94 | 156.9 |
Revenue growth for Facebook unsurprisingly has been very steady over the years while TZOO is not seeing much positive
Long Facebook (FB)
It’s no secret that I’ve been a big believer in Facebook and that continues to be the case. It’s fair to say that Facebook’s core product growth opportunities will start to be more limited given the number of active users and ad growth. Even there though, as Facebook starts to add more video and as offline ad dollars move online, core Facebook will Continue to see significant growth. Instagram is just getting started and time spent on Whatsapp and Messenger are incredibly bullish for its future. I continue to think Facebook is one if not the best growth opportunity among the tech stocks that I follow.
Next earnings: April 26th 2017
Short Match Inc (MTCH)
I’d generally say that Match has been an impressive story in recent years and I do expect that trend to continue but in this case, I’m mostly betting that it’s Current Valuation means it will underperform Facebook in the short term. Match does face a tremendous amount of competition and I’m not convinced that its current valuation is justified given its growth prospects.
Next earnings: May 2nd 2017
